Corel announced its third-quarter 2002 results yesterday, stating a net third quarter loss of $59.1 million.

The loss factors in an "impairment loss" from the write-off of goodwill. The company completed an assessment of the value of its goodwill during the quarter as a result of which it recorded a $50.5 million non-cash charge for the writing-off of all its goodwill.

Revenues for the quarter were $31.3 million, compared with $34.2 million in the year ago quarter. This left the company with a net loss of $8.6 million, compared to a loss of $6.3 million in the second quarter of this year and a gain of $500,000 for the same period last year.

Company revenues climbed two per cent ($500,000) in comparison to its second quarter. This was attributed to CorelDRAW Graphics Suite 11 (which shipped in August in the US, in September in Europe) sales and higher than expected WordPerfect sales.

On this, the company said: "These two factors combined more than offset both the typical seasonal decline in sales in Europe and the decline in sales of the previous version of CorelDRAW graphics suite usually seen prior to the release of an upgrade."

The company revealed that its creative product line sales - procreate and Bryce - have seen sales decline since their introduction in last year's third quarter.

Corel president and CEO Derek Burney, said: "Sales were in line with expectations, though expenses were somewhat higher as we balance marketing and advertising costs required to support new products, recapture market share and build new solutions."

"Today's economy is challenging for software sales, but not insurmountable if you have the technology and know-how. Our balanced approach ... should enable us to emerge as one of the leading service providers in the enterprise software arena when major industry shifts occur after this economic downturn," he explained.

The company haas $77.7 million in cash, cash equivalents and marketable securities.